Nvidia can give Nintendo something that matches/betters anything Sony can get.
That's the problem for Sony, once you remove the "oooh, better hardware" appeal from them, they don't really have much on Nintendo. Third parties can't ignore the Nintendo platform either because Nintendo has a proven track record of dominance in the portable field.
If I was Nintendo and Sony tried this, I'd just wait 6-8 months and then launch a Switch branded upmarket competitor with even better specs, and I'd keep the current Switch at a lower cost, redesigned with a more kid friendly design.







